The main legal point established in the judgment is the court's authority to entrust the investigation to the CBI in cases involving serious allegations against local police officials, ensuring an independent and credible inquiry.

Ajit Prakash Shah, C.J.

By order dated 29.10.2003 passed in contempt Petition No.431 of 2003 (National Insurance Company Ltd., Coimbatore v. K. Nandabalan, 2005 (2) LW 439), the learned single Judge directed to constitute a Central Agency headed by the Deputy Inspector of Police, CB CID, Chennai for the purpose of looking into all the complaints relating to bogus claims before the Motor Accident Claims Tribunal filed based on fabricated records. It was directed that whenever complaints of such types are given to the Central Agency so constituted, the Central Agency may have the complaints investigated by any of the officers attached to it or transfer the investigation to any officer of competent jurisdiction within whose jurisdiction the cause of action for filling a motor accident case has arisen. It was for the directed that in the event of transferring the work of investigation to any officer other than an officer attached to the Central Agency, the Central Agency shall keep monitoring the investigation to be done by the officer to whom the work has been transferred. The Central Agency was directed to take every endeavour to complete the investigation in respect of crimes so brought to its notice within 60 days from the date of receipt of such a complaint and file the final report before the Court having jurisdiction over the area where the cause of action has arisen.

2. The contempt petition was filed by the National Insurance Company Limited complaining about the callous and indifferent manner in which the Law Enforcing Agency was treating the complaints filed by the Insurance Companies complaining of fabricated records to make it appear as though a particular vehicle is involved in a road traffic accident so as to bolster all false claims of alleged victims. The learned single Judge noticed that there is a racket going on in this State involving the handwork of a number of people from all fields, in fabricating the records at the police station level as well as at the hospital level, and those records are used to give a colour to a motor accident claim before various Tribunals. The Court also took notice of the fact that several doctors, police officers and other public officials are involved in the scam. In fact, the learned Public Prosecutor appearing for the State admitted the large scale fraud and fabrication in such claims and stated that the State was also keen to put an end to the menace. The learned Public Prosecutor suggested for the constitution of one Central Agency to look into the complaints of the types referred to above so that the investigation would proceed on the right direction and in all earnestness. Pursuant to the order of the learned single Judge nearly 400 complaints were lodged before the Central Agency by the Insurance Company.

3. The National Insurance Company has now filed W.P.No.795 of 2005 complaining that the course of action initiated by the Central Agency is not only slow and tardy but after the initial enthusiasm, on the realization that a sincere re-investigation may expose fellow police officials, there was on effort to tone down the manner of investigation. It is alleged that the officers to whom re-investigation was entrusted are totally indifferent to the serious nature of the crimes involved. Even in such of those few cases where a fraud was exposed and chargesheets were filed, it was found that the chargesheets were so formulated and proceedings manipulated so as to enable the accused to escape the wrath of law. In large number of cases, notwithstanding the glaring fraud and fabricated documents available on record, the Central Agency has totally disregarded and ignored the vital links and instead closed the complaints as mistake of facts. In particular, reference was made to several such instances in respect of complaints with District Crimes Branch, Pudhukottai. It is alleged that the officials at Pudhukottai to whom reinvestigation were entrusted were antagonistic towa